1. No July production update was released. IMO this has reduced the already diminished confidence of holders. Monthly updates in the past have always focussed on the positives but at the same time, given us an insight as to what is happening at Wiluna.
2. The production costs included in the June production update incorporated the cost of open cut mining. While it is true that the open cut ore makes up part of the ROM stockpile from which we are pouring gold from, but open cut operations have finished at Wiluna. Note, the cost of underground ore per tonne is much greater than cost of open cut ore per tonne. Having said this, the underground has better grades of gold. On the other hand, production costs are being scaled back in other areas. So I don't rely too much on the $750 per ounce cost of production as an indicator of current or future production costs.
Is Wiluna currently turning a profit???
I put in place a stop loss a couple of days before the quarterly was released just in case the news wasn't good. My stop loss got hit before the release of the quarterly. I am still hoping to see a turnaround in the direction of the share price.
AXM Price at posting:
10.1¢ Sentiment: None Disclosure: Not Held
